Learn how to calculate operating cash flow margin, a vital indicator of earnings quality and efficiency, with a detailed formula and practical example.

EBITDA stands for earnings before interest, taxes, depreciation and amortization. EBIT, or earnings before interest and taxes, attempts to equalize earnings by eliminating the effects of income taxes ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Increasing expense accruals, or accrued expenses, helps companies conserve cash at the time they incur an expense. Using accrual-basis accounting, companies record expenses when incurred but don't ...

Cash flow is, understandably, one of a company’s most significant concerns. To stay on top of this vital financial metric, business owners rely on accurate, consistent cash flow statements. These ...

The ending balance of a cash-flow statement will always equal the cash amount shown on the company's balance sheet. Cash flow is, by definition, the change in a company's cash from one period to the ...

FASB ISSUED CONCEPTS STATEMENT NO. 7 TO HELP CPAs who use present value and cash flow information as the basis for accounting measurements. Using Cash Flow Information and Present Value in Accounting ...

Free cash flow is the amount of cash a business has remaining from operations after paying capital expenditures. Find out how investors can use free cash flow to measure the financial health of a ...

University of Western Australia provides funding as a founding partner of The Conversation AU. One of the most important issues for small businesses is their ability to manage cash flow. This is ...